Pork Leaders Focus on Trade

Pork Producers Have a Lot at Stake in NAFTA, South Korea, Japan Trade Talks

Pork production in the U.S. is growing, and leaders from the National Pork Producers Council are continuing to focus on trade deals as a larger volume of U.S. pork value comes from overseas markets. Leaders worry the tipping point of current trade talks could erode U.S. markets. (DTN file photo)

WASHINGTON (DTN) -- Pork producers can say they are optimistic about the current state of trade, but leaders of the National Pork Producers Council are concerned the U.S. may be falling behind competitors such as the European Union in opening trade markets.

NPPC leaders met Thursday at their Washington office with a group of reporters to talk about the main topics of a fly-in with 110 producers this week. Farmers are facing labor issues, and the livestock industry wants a vaccine bank for foot-and-mouth disease in the farm bill. Still, trade was the dominant topic for the pork producers with more than 26% to 27% of the value of a U.S. market hog coming from exports.

The U.S. remains the largest pork exporter, sending 2.3 million metric tons overseas last year, which equated to about $6 billion in revenue for pork producers.

A few years ago, the pork industry was looking for new packing capacity to meet demand. Now there are five new packing plants starting production or being built, including a new Seaboard Triumph operation in Sioux City, Iowa, that started production at the end of August. These plants were relying somewhat on export growth from the Trans-Pacific Partnership, which the Trump administration withdrew from last January. The prospect of the TPP caused a lot of producers to invest in those packing facilities.

"Now it's very, very concerning to me that we are building all of this capacity on the hope we will have those trade agreements," said Ken Maschhoff, president of NPPC and a producer from Carlyle, Illinois. "We do rely on trade for these new plants and the new production that will come from these plants."

U.S. pork export volume will eventually reach 30% to 33% in the near future to satisfy the larger production volume. Despite the loss of the Pacific trade deal, Jim Heimerl, an Ohio pork producer and president-elect of NPPC, said he and other investors in the new plants need to remain positive.

"We haven't thrown the towel in yet," Heimerl said. "We're still working on a bilateral trade agreement today. TPP might be a thing of the past, but we're still hoping bilateral trade agreements will come."

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

More Recommended for You

Recommended for You

NPPC leaders said they recognize the value of existing free-trade agreements and partners, as well. While the U.S. may export pork to more than 100 countries, the majority of U.S. pork exports go to the 20 countries that the U.S. has existing free-trade deals with. The North American Free Trade Agreement adds about $12.50 of value to the price of a market hog, and the trade deal with South Korea adds about $4.51 to the value of a hog. The $4.51, incidentally, is about the average estimated profit margin for producers projected for 2018, Maschhoff noted.

"So one trade agreement, one slip, and we would have unprofitable operations in the foreseeable future," he said.

When it comes to NAFTA, pork producers are concerned about repeated comments within the Trump administration about terminating the deal. That would result in agricultural products going from a non-tariff situation to allowing Mexico to implement a variety of tariffs on various pork products. Canada would also put tariffs in place. One point that gets lost in the idea of terminating NAFTA is that U.S. overall tariffs are lower than those Canada and Mexico could impose. NPPC projects withdrawing from NAFTA would cost pork producers $1.5 billion annually.

"We're all up for modernizing NAFTA, but we need to maintain that tariff-free access," said Nick Giordano, vice president of global affairs for NPPC.

While NAFTA and South Korea are important, Japan is the top market for U.S. pork products, valued at about $1.6 billion last year. The EU has reached a trade deal in principle with Japan, though the details have not been hammered out.

"That No. 1 market in Japan, we're afraid that's going to decay and we're going to lose that because the Europeans are now going to have a leg up on us," Maschhoff said.

Nebraska Gov. Pete Ricketts spoke to reporters separately Thursday during a state trade mission in Japan. DTN asked Ricketts about his understanding of the impact of the European Union trade deal with Japan. Ricketts pointed out Nebraska alone exports about $200 million in pork to Japan.

"One of the concerns if that deal moves forward, which it is likely to do, that will put pressure on our exports of pork to Japan, and that's an important market for us," Ricketts told reporters.

President Donald Trump is scheduled to go to Japan in November. NPPC leaders will be hoping the president uses the trip to start talks on a bilateral trade deal with Japan to offset the potential impact of the EU deal.

"Our producers need a home run with Japan," Maschhoff said.

Besides Japan, the EU already has a deal with Canada and is negotiating with Mexico. Dow Jones reported just Thursday that senior EU officials outlined plans to negotiate FTAs with Australia and New Zealand. The EU is essentially reaching out to other countries that were part of TPP.

While perhaps being behind the EU in trade agreements at this point, Maschhoff added, "We have to be positive. Ultimately, calmer heads will prevail and we will get these trade agreements. It makes so much economic sense, not just for us, not just for the United States, but for our trading partners."

Chris Clayton

Contact Us

About DTN

DTN/The Progressive Farmer and the MyDTN suite of proprietary business management tools are transforming the agriculture industry with game-changing agricultural information solutions and market intelligence that enable farmers, agribusiness, and commodity traders to actively and effectively manage their businesses. For more information on all MyDTN services, visit www.DTN.com/agriculture/.

Join the community! Registration is FREE. As a member of the DTNPF online community you can contribute to discussions, save your settings, get exclusive email alerts and access to special online sections, and read e-newsletters.

Please correct the following errors and try again:

First Name*

Last Name*

Postal Code*

e.g. 68114 (US) or Y0B 1G0 (Canada)

Phone Number*

e.g., 402-390-2328

Email Address*

Confirm Email Address*

Password*

8-32 characters, include one number (0-9) and one letter (a-z)

Confirm Password*

I agree to receive information from DTN/The Progressive Farmer containing news, updates and promotions regarding DTN/The Progressive Farmer's products. I understand I can withdraw my consent at any time.

Privacy Policy and Terms of Use

Updated: March 14, 2016

Telvent DTN, LLC, doing business as “DTN The Progressive Farmer” or “Schneider Electric” (hereinafter “Schneider Electric”) respects individual privacy and values the confidence of its customers, employees, business partners, and others. Schneider Electric strives to collect, use, and disclose personal information in a manner consistent with the laws of the countries in which it does business and has a tradition of upholding the highest ethical standards in its business practices.

When you connect to or access this website (hereinafter the “Site”), you agree to be bound by the general terms of use set out below, as well as any specific terms mentioned on certain pages within this Site, as updated from time to time. Your access and use of this Site is subject to all applicable international, federal, provincial, state, and local laws and regulations. If you do not agree to these terms, you should leave this Site immediately.

Privacy Policy

Handling and Use of Personal Information

Schneider Electric collects personally identifiable information on a voluntary basis for the purposes of: providing customized content, subscription service registration, demographic compilation, and marketing and promotional campaigns. When information is required that uniquely identifies you as an individual (name, address, phone number, etc), you will have the opportunity to "opt-out" of any promotional marketing, except when you specifically request marketing or promotional information.

From time to time, Schneider Electric will perform statistical analysis using data provided by you for the purposes of: determining interest in various services provided by Schneider Electric, inform advertisers of the effectiveness of their marketing campaigns, and to better serve your information needs. Also, Schneider Electric may allow select third parties to offer subscription services or fee-based products through the Site. Schneider Electric makes no guarantees in regard to the policies of these parties, so you should investigate each site's privacy policy before providing personally identifiable information to third parties. Notwithstanding the foregoing, Schneider Electric does not sell or rent your personal information to third parties.

Schneider Electric may disclose your personal information if required to do so by law or in the good-faith belief that such action is necessary to: (a) conform with the edicts of law or comply with legal process served on Schneider Electric or the Site; (b) protect or defend the rights of property of Schneider Electric and its web sites; or (c) act in urgent circumstances to protect the personal safety of Schneider Electric employees, users of Schneider Electric products or services, or members of the general public.

At times Schneider Electric may allow customer to subscribe and/or pay for services through the Site. In such event, Schneider Electric may use a third-party shipping company to fulfill customer orders through the Site, and may also use a credit card processing company to bill you for goods or services that you request. The current credit card processing company that Schneider Electric uses to store and process credit card transactions is called CyberSource®, and more information about this company can be found at http://www.cybersource.com/. Schneider Electric takes all reasonable measures to select third-party agents for fulfillment and financial processing that agree to not retain, share, store, or use your personal or financial information for any other purposes than fulfilling orders or enforcing customer agreements.

You should note that when you visit this Site, the pages you visit may be tracked. When you give us personal information, Schneider Electric will not share that information with third parties without your permission, other than for the limited exceptions already listed. Such information will only be used for the purposes stated above.

Schneider Electric will retain your information for as long as your account is active or as needed to provide you services. Schneider Electric will retain and use your personal information as necessary to comply with its legal obligations, resolve disputes, and enforce its agreements. Upon request, Schneider Electric may reasonably grant you access to the personal information that it holds, and will make a reasonable effort to correct, update, or delete information that is demonstrated to be inaccurate or incomplete.

Use of Cookies

Schneider Electric utilizes 'cookies' to provide custom content and measure visitation patterns and user preferences. Cookies are small text files sent from Schneider Electric to your hard drive. These files do not allow anyone else to obtain your personal information, nor do they cause any harm to your computer. Schneider Electric may provide user data obtained using cookies to third parties, but this information will not include your personally identifiable information.

Third parties may use cookies, web beacons, and similar technologies to collect or receive user data from the Site and elsewhere on the internet and use that information to provide measurement services and target ads. If you would like more information about internet-based advertising, go to www.aboutads.info. If you would like to opt out of cookie-based collection and use of information for ad targeting, go to http://www.aboutads.info/choices.

Security Measures

Schneider Electric uses a variety of security measures to protect your personally identifiable information from unauthorized use, which may include but is not limited to, the use of SSL encryption. Schneider Electric services may, however, contain links to other web sites that are not controlled by Schneider Electric. Please take all necessary precautions to protect your information when you visit one of these sites.

Schneider Electric does not guarantee and makes no representations or warranties that this Site and access thereto are secure, or that this Site is free of viruses or bugs that could result in damage to or the loss of data. You are responsible from protecting your data from viruses.

Schneider Electric is not interested in minors

Schneider Electric has no desire to collect information from those under the age of 18. In an instance where such information was collected it would be purely accidental and unintentional. Schneider Electric encourages parents to discuss the Internet with their children and monitor personal information that a child may provide via the Internet.

Safe Harbor and Dispute Resolution

Telvent DTN, LLC (Schneider Electric) complies with the U.S.-EU Safe Harbor Framework and the U.S.-Swiss Safe Harbor Framework as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of personal information from European Union member countries and Switzerland. Telvent DTN, LLC (Schneider Electric) has certified that it adheres to the Safe Harbor Privacy Principles of notice, choice, onward transfer, security, data integrity, access, and enforcement. To learn more about the Safe Harbor program, and to view the certification of Telvent DTN, LLC (Schneider Electric), please visit http://www.export.gov/safeharbor/.

Any questions or concerns regarding the use or disclosure of personal information should be directed to Schneider Electric at the address given above. Schneider Electric will investigate and attempt to resolve complaints and disputes regarding use and disclosure of personal information by reference to the principles contained in this policy. For complaints that cannot be resolved between Schneider Electric and the complainant, Schneider Electric has agreed to participate in and utilize PrivacyTrust online dispute resolution and make a reasonable effort to resolve any complaints pursuant to Safe Harbor principles. For more information about PrivacyTrust or the operation of PrivacyTrust’s dispute resolution process, please visit http://www.etrust.org/cert/678545.html. The PrivacyTrust online dispute resolution process shall be conducted in English.

Adherence by Schneider Electric to these Safe Harbor principles may be limited (a) to the extent required to respond to a legal or ethical obligation; (b) to the extent necessary to meet national security, public interest or law enforcement obligations; and (c) to the extent expressly permitted by an applicable law, rule, or regulation.

Change in Ownership

In the event of a change in ownership of Schneider Electric as a result of a sale, merger, acquisition or bankruptcy, then Schneider Electric reserves the right to transfer all of your personal information to a separate entity. Schneider Electric will use commercially reasonable efforts to notify you (e.g. by posting on its Site, issuing a press release, or notification by e-mail) of any change in ownership.

Terms of Use

Access to Password Protected / Secure Areas

Access to and use of password protected or secure areas of this Site is restricted to authorized users only. Individuals misusing passwords and unauthorized individuals attempting to access restricted areas of this Site may be subject to civil liability and criminal prosecution. You must immediately notify Schneider Electric of any unauthorized uses of password protected or secure areas or any other breaches of security.

Comments and Content Control

If you post comments, materials, or links (collectively “content”), you will have full editorial control of your content, subject to F.C.C. and other legal restrictions on the public broadcast of information, and you assume full responsibility for your content and any harm resulting from your content or conduct on this Site. However, Schneider Electric retains absolute discretion to refuse, edit, or remove any content. Furthermore, Schneider Electric may, in its sole discretion, suspend your access to this Site, any Products, and Schneider Electric’s systems if it determines that the your actions or your content are or may be or become illegal, objectionable, or compromise the integrity and/or security of the Schneider Electric’s systems or business. You will not post or make available any content or elements thereof that (a) infringes on the intellectual property rights of any third party; (b) violates any law or regulation; (c) is defamatory or trade libelous; (d) is pornographic or obscene; (e) violates any right of privacy; or (f) contains any viruses, Trojan horses, worms, time bombs, cancelbots or other computer programming defects intended to damage any system or data. Schneider Electric has no obligation to you and undertakes no responsibility to review your content to determine whether any of it may incur liability to third parties. Schneider Electric has no obligation to attribute your content to that of you, or to deliver your content to a Schneider Electric subscriber who does not want to receive such content.

Schneider Electric has not reviewed, and cannot review, all of the comments, material, or links (collectively “content”) posted to this Site, and Schneider Electric cannot be responsible for that content or any effect thereof. Schneider Electric does not represent or imply that it endorses any content posted on this Site, nor does Schneider Electric represent or imply that it believes any such content to be accurate or harmless. This Site may contain content that is offensive, indecent, objectionable, or inaccurate; violates privacy or publicity rights; or infringes intellectual property rights. Schneider Electric shall not be responsible for any harm resulting from visitors’ use of this Site or visitors’ use of any content posted on this Site.

Trademark and Copyright Information

The Schneider Electric brands and any registered trademarks of Schneider Electric referred to on this Site are the sole property of Schneider Electric and/or its parent companies or affiliates. They may not be used for any purpose without the express written consent of Schneider Electric. You agree not to reproduce, other than for your own personal, non-commercial use, all or part of this Site or its content on any medium whatsoever without the express written consent of Schneider Electric. Schneider Electric does not grant any right or license for the personal and non-commercial use of the Site or its content, except for a “non-exclusive” license to consult it on an “as is” basis, at your own risk. All other rights are reserved.

Policy Changes & Updating Information

Schneider Electric makes all reasonable efforts to ensure that this Site is accessible at all times. You may however be prevented from accessing the Site or experience access problems due to technical difficulties or during maintenance or work upgrades. In addition, while Schneider Electric takes reasonable care to ensure that the information on this Site is kept up to date, it makes no representation or warranty, express or implied, of its accuracy or completeness. Schneider Electric accepts no liability for any direct, special, or consequential damages of whatsoever kind and howsoever caused, arising out of your use of or inability to access the Site.

The content of this Site and the websites accessible via hypertext at this Site may be corrected, amended or updated at any time and without notice.

Schneider Electric reserves the right to modify this Privacy Policy and Terms of Use whenever the need arises. Updates to this policy will be posted to this Site in a timely manner. When such updates are made, the “last updated” date at the top of this privacy policy will be modified. This policy is not a contractual agreement and does not provide you with any legal right. Unless otherwise specified, this Site, its content, and its domain name and URLs are the sole property of Telvent DTN, LLC. If you feel that this Site is not following its stated privacy policy, then you may contact us at: